Agency Management

It’s not uncommon: a nonprofit’s program staff or its executive director get excited about funding opportunities and ask the proposal writer or development people “put something together and go after that grant! The XYZ Foundation says it’s interested in what we do, there’s a deadline coming up in a week, so write it up and submit it.”

Much has been said about a nonprofit’s need for evaluation and accountability. Donors want to know what their money has produced. Nonprofits need to care a lot about their work AND count the things that tell them the work is producing results. How to balance head and heart?

Traditionally, it wasn't the norm to think in business terms about your nonprofit but it’s a useful exercise because it sharpens your thinking about what you do and how you do it. One element of this kind of thinking is to consider competition—what other agencies or groups or community organizations are working on the same issues, addressing the same problems? This can be an uncomfortable question but what you learn can be valuable in program planning and in submitting proposals.

MYTH: If I give a building, vehicle, computer, book I wrote, or whatever to the nonprofit and later close the nonprofit, I can just change the copyright, deed, or title back into my name again, or take the property back.

MYTH: I can use the money for my nonprofit for anything I want.

MYTH: I didn’t apply to IRS for 501(c) (3) tax-exempt status, so I don’t have to file Federal annual nonprofit tax returns.

MYTH: For my new nonprofit, I will put all family members on the board of directors, and we will control the organization.

MYTH: Nonprofits are not allowed to make a profit from their activities.

MYTH: I am going to convert my for-profit business to a nonprofit business.

MYTH: If we’re running our nonprofit efficiently, our overhead and administrative costs should be small.